API challenges EPA’s final oil and natural gas sector rule

API filed a lawsuit on Tuesday with the D.C. Circuit Court of Appeals challenging the Environmental Protection Agency’s (EPA) final oil and natural gas sector rule calling for emission standards for new, reconstructed and modified sources. Specifically, API challenges the EPA's failure to adhere to the specific limitations provided by the Clean Air Act on the way the agency can develop regulations.

“The industry continues to lead the way on emissions reductions because it is good for the environment and good for business,” said API Managing Counsel John Wagner. “Even as oil and natural gas production has risen dramatically, carbon emissions have fallen, thanks to industry leadership and investment in new technologies. Greater use of clean, affordable natural gas has pushed carbon emissions from power generation to their lowest level in more than 20 years.

“Consumers and businesses are seeing significant savings through lower energy costs largely driven by the revolution in US shale energy production. The implementation of duplicative and costly regulations could discourage natural gas production, disrupt our progress reducing emissions, and increase the cost of energy for American consumers.”

In addition to API, several industry groups and a coalition of 14 states have filed to sue the EPA, calling on the D.C. Circuit Court of Appeals to assess the EPA’s rule on the grounds that the agency has exceeded its statutory authority.